Airline shares at new lows; high fuel price hits industry

Mumbai: The Indian aviation industry is facing dual pressure from high inflation and rising cost of fuel. Jet Airways is reportedly incurring an operational loss of around $2 million per day. Similarly, Air India is faced with a loss of Rs 10 crore per day. Some airlines have cancelled long distance flights and are cutting down maintenance costs.
Hike in price of air turbine fuel is a major reason for concern for the aviation industry.
According to reports, passenger load has fallen to an average of 55-60 per cent per flight from last year’s peak of 70-75 per cent.
On the bourses, shares of Deccan Aviation were at Rs 87.35 after hitting a 52-week low of Rs 86 on volume of 74,874 shares. It fell 32 per cent in the past one month and plunged 74 per cent from its 52-week high of 335. Spicejet fell 3.19 per cent to Rs 28.80 after making a new 52-week low of Rs 28.65 on volume of 3,99,132 shares against two-week average of 13,16,606 shares. The scrip has declined 23.71 per cent in past one-month and has corrected over 72 per cent from its 52-week high of Rs 104.80.
Jet Airways declined 3.87 per cent to Rs 498.20 on volume of 35770 shares.
24/06/08 Economic Times

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Categories: Indian Aviation- In General Jun 2008